Fulton Electronics sells televisions and other electronics. All the electronics come with a default oneyear warranty against defects. Warranty estimates are recorded every month. Fulton estimates that warranty repairs or replacements areof the sales price. Customers are also able to purchase a twoyear extended warranty. The warranty revenue is spread evenly over the twoyear period. During Septemberthe following transactions occurred. The company uses the perpetual inventory system and operates in a state that has a sales tax rate of

Sales tax amounts on purchases are added to the value of the item purchased. prepare a journal entry for the above transactions. Are liabilities reported as current or longterm on the balance sheet? Explain where each 

belongs